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Kansas Military Analysis Research Report Kansas Military Analysis Fiscal and Economic Impact of Military Activity in Kansas Center for Economic Development and Business Research W. Frank Barton School of Business Jeremy Hill, Director Debra Franklin, Regional Labor Force Analyst Kasey Jolly, Regional Economic Analyst Mary Jane Townsend, Research Associate Prepared for November 2009 About the Governor’s Military Council The Governor’s Military Council fosters cooperation between the installations and private and public sectors, and pursues initiatives to enhance the quality of life for all military personnel, active and retired. The council also assists in the development, coordination and execution of strategy required by any future change in missions proposed by the Department of Defense. The Council was established by Executive Order and has been charged to initiate, act upon and consider all necessary strategies to: • Optimize the military presence in Kansas, including recruitment and retention of new missions and force structure; • Actively foster close, effective cooperation among the installations and public and private sectors throughout the state; • Pursue initiatives to enhance the quality of life for all military personnel, including active and retired; • Promote Kansas as a desired location for all Department of Defense retirees; • Assist in the transfer of technology between the military and the private sector to enhance the competitive posture of both in the national and global market; • Explore and develop outreach opportunities for individuals retiring from military service to use their talent as members of the Kansas workforce; and • Assist in the development, coordination and execution of strategy required by any future change in missions proposed by the Department of Defense. Members Governor Mark Parkinson Rep. Tom Hawk Sen. Roger Reitz Chairman, Topeka State Representative State Senator, Manhattan Manhattan John Armbrust James C. Remsberg Executive Director Congresswoman Lynn Wichita Governor's Military Council Jenkins Manhattan U.S. Representative Senator Pat Roberts U.S. Senator Lt. General Robert Arter Doug Kinsinger (retired) Greater Topeka Chamber of Tim Rogers Salina Airport Authority, Salina Armed Forces Bank Commerce/GO Topeka Fort Leavenworth Mike Shilling Sen. Kelly Kultala Colonel George Boyd State Senator, Kansas City Shilling Construction Company Manhattan Civil Air Patrol, Wichita John Montgomery Senator Sam Brownback The Daily Union, Junction City Robin Spurrier U.S. Senator Spurrier Chemical Companies Congressman Dennis Moore Wichita Major General Tod Bunting U.S. Representative Adjutant General, Topeka Scott Stuckey John E. Moore Old Trooper Regiment, Inc. Mark Edwards Former Lt. Governor and Past Junction City Hoover Schermerhorn Edwards GMC Chair, Wichita Pinaire & Rombold Representative Lee Tafanelli Congressman Jerry Moran State Representative, Ozawkie Junction City U.S. Representative Neil Fisher Congressman Todd Tiahrt Kansas Building Systems Sen. Lana Oleen (retired) U.S. Representative Manhattan Topeka Colonel Robert R. Ulin (retired) Aaron Otto Command & General Staff Pat Gallaher th Wichita Metro Chamber of Office of State Treasurer College / 5 Region Association Dennis McKinney, Topeka of the United States Army Commerce Lansing Alonzo Harrison Jerry Reilly HDB Construction, Topeka Reilly and Sons, Inc. Linda Weis Leavenworth Weis Real Estate Company Manhattan About Kansas, Inc. Created by the Legislature in 1986, Kansas, Inc. is an independent, objective, and non-partisan organization designed to conduct economic development research and analysis with the goal of developing policies and recommendations to ensure the state’s ongoing competitiveness for economic growth. To attain our mission, Kansas, Inc. undertakes these primary activities: 1) Identifying, building, and promoting a Strategic Plan for economic development efforts in the State of Kansas; 2) To complement the Strategic Plan, Kansas, Inc. develops and implements a proactive and aggressive research agenda, which is used to identify and promote sound economic development strategies and policies; 3) Through collaboration and outreach with economic development entities and other potential partners, Kansas, Inc. conducts evaluation reviews and provides oversight of economic development programs to benchmark development efforts in the State of Kansas. Co-Chaired by the Governor, Kansas, Inc. is governed by a 17-member Board of Directors. Board members, as mandated by legislation, include four members of Legislative leadership, a representative from the Board of Regents, the Secretary of Commerce, the Commanding General of the Kansas Cavalry, a representative from labor, and eight other members from the private sector representing key Kansas industrial sectors. Private sector members are appointed by the Governor and confirmed by the Kansas Senate. Through analysis and open dialogue, Kansas, Inc. identifies policy options and builds the consensus essential for concerted action on vital economic issues. Kansas, Inc. is designed to be a public-private partnership with expectations that state investments are leveraged with other funds to maintain a strong research portfolio. Co-Chairs Governor Mark Parkinson Donna Johnson Topeka Pinnacle Technology, Lawrence Members Gene Argo Rep. Lana Gordon American Rodeo Company, Hays State Representative, Topeka Patti Bossert Sen. Tom Holland Key Staffing, Topeka State Senator, Baldwin City Secretary David Kerr Don Landoll Kansas Department of Commerce, Topeka Kansas Cavalry, Marysville Wil Leiker Lawrence L. McCants AFL-CIO, Topeka First National Bank, Goodland Reginald Robinson John Pilla Kansas Board of Regents, Topeka Spirit AeroSystems, Wichita Stephen L. Waite Donald P. Schnacke Kansas Cavalry, El Dorado P.A., Topeka Rep. Tom Burroughs Sen. David Wysong State Representative, Kansas City State Senator, Mission Hills Kansas, Inc. Staff Stan Ahlerich Debby Fitzhugh Dan Korber President Director of Operations Sr. Research Analyst Contents Summary of Findings.................................................................................................................................4 Introduction ..............................................................................................................................................6 Methodology...........................................................................................................................................14 Assumptions............................................................................................................................................14 Economic Impact of Military Operations in Kansas ................................................................................17 Economic Impact of Forbes Field Military Operations ...........................................................................24 Economic Impact of Fort Leavenworth Military Operations ..................................................................30 Economic Impact of Fort Riley Military Operations................................................................................36 Economic Impact of McConnell Air Force Base Military Operations......................................................42 Economic Impact of Smoky Hill Air National Guard Military Operations ...............................................48 Economic Impact of a Gain or Loss of 1,000 Military Personnel ............................................................54 Appendix A. Economic Impact of ALL U.S. Military Activity to Kansas ...................................................55 1 Table of Tables Table 1. Summary Table of Findings ‐ Kansas...............................................................................................8 Table 2. Summary Table of Findings – Forbes Field......................................................................................9 Table 3. Summary Table of Findings – Fort Leavenworth...........................................................................10 Table 4. Summary Table of Findings – Fort Riley........................................................................................11 Table 5. Summary Table of Findings – McConnell AFB...............................................................................12 Table 6. Summary Table of Findings – Smoky Hill ANG ..............................................................................13 Table 7. Military Wages and Personnel ‐ Kansas ........................................................................................18 Table 8. Military Wages and Personnel – with Multiplier ‐ Kansas ............................................................18 Table 9. Contract Information – 2006 DoD ‐ Kansas...................................................................................19 Table 10. Total Economic Impact on Output from Procurement Contracts ‐ Kansas.................................20 Table 11. Contract Supported Earnings – with Multiplier ‐ Kansas ............................................................21 Table 12. Contract Supported Employment – with Multiplier ‐ Kansas .....................................................22 Table 13. Fiscal Impact ‐ Kansas..................................................................................................................23 Table 14. Military Wages and Personnel – Forbes Field.............................................................................25 Table 15. Military Wages and Personnel
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